Continuing our life insurance tip series with you…
Tip #7 To Get Your First Life Insurance is: “Know the Difference Between Term Life and Whole Life Insurance”
A permanent life insurance grants lifetime coverage, which is why it’s more expensive than term life insurance.
In addition to whole life, there are additional types of permanent life insurance.
It’s also more costly because it raises cash value.
A term life policy will grant coverage for only a particular period of time typically 10 to 30 years.
For some people, that would be more practical, depends on your financial needs.
Term life insurance can be an affordable way to obtain coverage until you reach a particular financial milestone, such as settling your kids to college or paying off your mortgage.
The funds can be used for whatever you need, like:
- Supplement retirement income;
- To cover emergencies;
- Cover the policy’s premiums;
- help pay for long-term care.
And that’s whether you choose a permanent or term policy depends on your financial goals and your needs.